Bitcoin has started a downward correction from above $21,000 two days ago. Now, if the buyers can keep the price above $20,000, Bitcoin will have a chance to resume its uptrend of recent days.
To Report News BTC, Bitcoin was struggling to break through the $21,000 resistance two days ago. Although the price crossed this level at some point, the decline in upward momentum above $21,000 failed the buyers to reach higher levels.
The recent peak of the price was formed at $21,074 and as can be seen from the chart below, after that a downward correction has begun in the Bitcoin market. During this downward movement, the support of $20,600 and $20,500 was first broken and the sellers managed to bring the price below the 50% Fibonacci retracement level. In this analysis, Fibonacci levels are set based on the upward movement of the price from $20,029 to the peak of $21,074.
Bitcoin is now below the $20,500 resistance and the 100-hour simple moving average (MA 100 – red line in the image) and is swinging in a descending channel that has formed resistance at $20,700.
The price still holds support at $20,450, which is near the 61.8% Fibonacci retracement level, and if the market continues its upward trend, $20,600 and the 100-hour simple moving average will be the closest resistances facing Bitcoin. .
The next key resistance is the $20,700 level, which is also the ceiling of the descending channel on the hourly chart. After that, the turn comes to $21,000; A decisive price break through this key resistance could pave the way for Bitcoin to jump to $22,000 and then $22,500.
Conversely, if Bitcoin fails to break through the $20,700 resistance, the downtrend may continue. In this case, the closest support in front of the price level will be $20,450, after which it will be the turn of $20,200.
The next key support is $20,000. Crossing and closing the price candle below this level carries the risk of a deeper price fall in the short term.
The MACD is accelerating in the bearish range and the Relative Strength Index (RSI) is below the middle axis at the 50 level.
As mentioned, $20,200 and $20,000 are key supports for Bitcoin, and $20,600, $20,700, and $21,000 act as resistances.